1. Tivoli Storage Manager v. 4.1 Executive Presentation

2. New Dynamics in Todays Business World Challenges and Opportunities for IT How Integrated Storage Management Can Help Tivolis Information Integrity Initiative Why Tivoli? Discussion

3. New Dynamics in Todays Business World Technology adoption has reached an all-time high, building heterogeneous islands of information that must be connected across a complex Information Grid Laptop Palmtop PDA Cell Phone Pager

4. Focus on Return on Information TM 0 5 10 15 20 25 30 35 40 45 $B Traditional BusinessesNet Generation Assets Market Cap Fixed Asset Intensive Information Asset Intensive

5. Impact of e-business on the Bottom Line $1.07 $0.54 $0.27 $0.02$0.01 $0.00 $0.20 $0.40 $0.60 $0.80 $1.00 $1.20 BranchTelephone ATM PC BankingInternet Retail Banking: Cost/Transaction per Delivery Channel Transactions / Data Volume

6. Implications for our Customers Data Explosion Revolutionizing Scalability Needs –Traditional backup/restore techniques alone are no longer viable Increasing reliance on Mobile Computing –Network infrastructure does not support bandwidth requirements Relentless Technology Refresh –Creates unnecessary business disruption The Unspeakable D-word –Downtime is simply unacceptable

7. The Information Grid Must Manage Both Information and the Grid Total Lifecycle management of data storage resources –New servers, storage, and networks Total Lifecycle management of data assets –Creation, placement, quality-of-service, recovery, expiration

8. Storage at the Helm Stored information is now growing at 8-fold per year, largely driven by e-business initiatives More storage sold in 1999 than all prior years combined Storage prices falling at rates that exceed 35% per year For the first time, companies are spending more time and money on managing data, instead of storing it 40% of corporate assets still reside on S/390 - waiting to be unleashed!

9. The Challenges: Build manageable, available data infrastructure and recovery plans Leverage the rapid introduction of new technologies Control growth effectively Backup and archive within specified windows Restore lightning fast Build consistency across heterogeneous environment Challenges and Opportunities for IT

10. The Opportunities: How can I use storage and integrated storage management to spur incremental growth? How can online technologies help me reduce costs? How can users do more for themselves? How can I leverage the power of the Internet into revenue and market share? How can I build best practices throughout the organization? Challenges and Opportunities for IT

11. Integrated Storage Management Helps Integrated Storage Management is: Centralized administration Monitoring Reporting Protection Puts key information at your fingertips by: Making more efficient use of storage Reducing TCO by standardization and simplification Eliminating disparate point solutions across heterogeneous environments Supporting incremental growth through business application support

12. The Tivoli Storage Management Initiative provides an end-to-end management solution with proven methodologies to help customers link storage management policies with key business practices, to enable them to use information to DRIVE business, rather than simply support it The Tivoli Information Integrity Initiative

13. Tivoli Storage Management Solutions Data Infrastructure Data Infrastructure Storage Network Management Storage Network Management Enterprise Storage Mgmt. Enterprise Storage Mgmt. Tivoli Storage Manager Tivoli Data Protection for applications Tivoli Space Manager Tivoli Disaster Recovery Manager Tivoli Storage Network Manager Tivoli SANergy Tivoli Open System-managed Storage Tivoli Decision Support for Storage Management Analysis Tivoli Storage Resource Manager Storage Resource Mgmt. Storage Resource Mgmt.

14. Tivoli Storage Management Solutions Tivoli Storage Management Enterprise Protection Application Protection SAN Management Workgroup Protection Change Management Asset Management Operations Management Problem Management Security Management IT Service Level Management E-Business Management Pervasive Management Tivoli Enterprise

15. Tivoli Storage Manager protects more than a million systems and applications around the world. Tivoli Storage Manager is the ONLY choice for complete storage management in heterogeneous platform environments. Tivoli Storage Manager is the product of choice of more than 80% of the Fortune 100 companies Tivoli (and IBM combined) hold more than 24 patents related to storage management technology – the cumulative total of all of our competitors is 4. Tivoli and IBM are investing heavily in Tivoli Storage Management and SANs! About Tivoli

16. Tivoli Storage Manager v. 4.1 www.tivoli.com/storage